Shanghai General Motors (GM) Co., a joint venture between General Motors and China’s SAIC Motor Corp., will be investing 100 billion yuan ($16 billion) over the next five years developing new vehicles, the company announced on Sunday.
The automaker will use the funds to release 10 new or upgraded models every year until it has approximately 40 product lines needed to corner at least 10 percent of the Chinese market, Shanghai GM vice president Wang Yongqing said to the press at the Shanghai auto show, which formally opened on Monday.
26.5 billion yuan will be spent on environment-friendly products, including "new-energy" models by 2020, said Wang, adding that they also expect their Buick and Chevrolet brands to surpass 1 million in annual sales in that same timeline.
Wang said that the company will reduce fuel consumption in its vehicles by 25-30 percent in the process.
"In terms of new energy, we are keen on power efficiency and emission control and are ardent to go electrical throughout our portfolio," he said.
In a separate interview, GM China president Matt Tsien said that a significant portion of the investment will be for expansion such as for capacity additions.
Shanghai GM has 13 new engines and nine new transmission systems "in the pipeline," and is writing up plans to expand the use of small-displacement, direct-injection and turbo engines, introducing diesel engines "when the time is ripe" in their vehicles, Wang said.
Foreign carmakers have been among the most prolific factory builders in China, with Volkswagen and AG and Hyundai Motor Co. being the latest to announce plans or are already building in the country.
Toyota Motor Corp. also ended its self-imposed ban on new plants last week when it announced plans to spend around $441 million to boost annual production in China, while Ford Motors has committed to invest $4.9 billion on new plants and models this year.